Fiscal Year Ending
March 2023

FINANCIAL RESULTS BRIEFING

2023.5.26

JEOL Ltd.

Becoming a top niche company supporting
science and technology around the world
Company Philosophy
On the basis of "Creativity" and "Research and Development",
JEOL positively challenges the world's highest technology, thus
forever contributing to the progress in both Science and Human
Society through its products.

Vision“Evolving in the 70th Year”
Accelerate business expansion and achieve even higher profitability
based on our unique technologies and human networks which havebeen developed since the company's founding.

Mid-Term Management Plan

“Evolving Growth Plan”
We aim to improve customer satisfaction by enhancing
our R&D, manufacturing, and service capabilities.

Promote Innovation by co-creation

2

Expand business scale and achieve higher profitability

産業機器

Service3

医用機器

3D Printing

生化学自動分析装置

電子ビーム蒸着用電子銃

免疫分析装置qNMR（定量 NMR）法CRYO ARM™

半導体機器

受託分析

電子ビームマスク描画装置

設置室環境

電子ビーム直接描画装置

リユース

半導体 TEM

Promote Innovation by co-creation

Improve and strengthen for higher profitability

GlobalSingle Cell
Environmental
Analysis
Infection
Analysis
Quantum
Nano
ControlTechnology
Material
Measures
5G/6G
Structural
Element
Food
Life Science
Infrastructure
Strategy
AnalysisNEXT
Drug
Sustainable
Generation
Development
Next
Material
Hydrogen- Semiconductor
Generation
Forensic
based
Metabolome
Light-Emitting
Science
Society
Element
GreenTechnology

Innovative
Battery

DX Platform

Solutions
Research
Environment
Development

4

PresalesServices

Subscription
Offering

Aftersales
Services

R＆D
SupportTailoredApplication
SupportStep 1 （FY13-15）

Step 2 （FY13-15）

Improve our businessfoundation

Shift toward growthstrategies

CHALLENGE 5

Dynamic Vision▪ Management structurereforms▪

Reduce the number of
employees and otherstructural reforms,
Restructure group companies▪

▪ Corporate culture
reforms▪
▪
▪

Visualization, PDCA, market
reforms▪ Deep cultivation ofdeveloping markets▪

Step 3 （FY16-18）

Step 4 （FY19-21）

Concrete growthstrategy

Accelerate growth and takethe next steps

Triangle Plan

Triangle Plan 2022

▪ SpeedStrengthen productdevelopments
Improve manufacturing
abilities
Enhance our brand power
YOKOGUSHI strategy fullscale start
Implement capital
policies(public offering&
Nikon alliance)
Convert JRI into
consolidated subsidiaryPursue high-throughput
functionality and speed up
development▪ Diﬀerence
Launch Only-one JEOL
products, inculcate
YOKOGUSHI▪

Enhance core technologies▪

Proactive entry into growthmarkets▪

Provide total solutions▪

Make the required investments
and improve profitability▪ Change
Shift from academia to private
demand and from physicalproducts to services

Step 5 （FY22-24）
Expand the business scale and achieve
higher profitability

Establish local subsidiaries in
Brazil, Russia, India, China
and other countries

Evolving Growth Plan▪
▪
▪
▪

Strengthen and develop YOKOGUSHI strategy
Build barriers to entry, improve profitability
Continue to implement new strategies
Strengthen business support

Net Sales/Operating Profit Transition
Consolidated

Operating income

net sales(loss)

83.
2

75.3
1.4％
1.0

2010

Operating margin

99.3
79.6
△1.4％

3.7％

△1.2

3.0

2011

107.4

95.4
6.1%

3.1%

6.0

5.7%
2.1%

2.9

6.1

117.2

111.3

104.6

99.7

3.8%

110.4

6.0%

6.0%

4.7%

6.7

7.0

5.2

3.9

2.1

138.4
10.2%
14.1

170.0 （billion yen）
167.0
162.7
14.8%
14.1%
12.6%

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

¥83

¥100

¥110

¥120

¥109

¥111

¥111

¥109

¥106

¥113

¥135

Exchange rate(1$=)

¥85
5

¥79

24.0

24.2

21.0

2023
2024 （FY）（Forecast ）（Plan ）
¥130

¥115

Evolving Growth Plan

Accelerate business scale expansion and achieve higher
profitability by further implementing the “Evolving in 70th Year”

FY2022 Result

Recorded the highest sales and profit
Achieved the numerical targets for the first year of Mid-Term
Management Plan, “Evolving Growth Plan"

Semiconductor
market softening

FY2023 Forecast

Mid-Term Management Plan
Evolving Growth Plan
-Initiatives

6

Multi-beam mask lithography systems were affected by the recent
softening of the semiconductor market. On the other hand, single beammask lithography systems continue to be strong due to demand for
power semiconductor devices.
Net sales 167 billion yen, operating profit 21 billion yen
ordinary profit 21.5 billion yen, net profit 15.5 billion yen

1. Build barriers to entry and improve profitability
2. Expand business in growing markets such as semiconductors, drug
discovery, batteries, etc.

INDEX
1. FY 2022 Result and FY 2023 Full-Year Forecast

2. Performance of each business
2-1. Scientific/metrology instruments
2-2. Industrial equipment

2-3. Medical equipment

3. Our Initiatives to SDGs
4. Summary71. FY 2022 Result and FY 2023 Full-Year Forecast

Consolidated net sales 162.7 billion yen, Operating profit 24.2 billion yen, Ordinary profit 23.5 billion yen,
Net profit 17.8 billion yen(100 million JPY)

Consolidated figures (P/L)

FY21 Full Year FY22 Full Year
Result (1)Result (2)1 Net sales

Factors for fluctuating ordinary profit(year-on-year)(100 million JPY)

1,384

1,627

243

2 Sales cost

830

900

69

(Cost rate)

60.0 (%)

55.3 (%)△4.6 (%)

4 Gross profit

554

727

173

2. Improved cost rate, etc.

5 SGA

327

382

55

3. Sales volume increase

6 R&D cost

85

104

19

7 SGA total

412

485

73

8 Operating profit

141

242

100

9 Non-operating income

24

8

△16

10 Non-operating expenses

3

15

12

163
4

235
10

72
6

1

8

7

14 Net profit before tax

167

237

71

15 Corporate taxes

44

59

15

16 Net profit

123

178

56

Exchange rate (1$=)

¥113

¥135

Exchange rate (1€=)

¥131

¥141

3

11 Ordinary profit
12 Extraordinary income
13 Extraordinary loss

9Year-on-Year(2)-(1)(A) Positive factor
1. Exchange margin(yen depreciation)

173
102

36
35

(B) Negative factor△73

1. Increased SGA△55

2. Increased R&D cost

△19(A)+(B)

100

Consolidated net sales167 billion yen, Operating profit 21 billion yen, Ordinary profit 21.5 billion yen,
Net profit 15.5 billion yen
Consolidated figures (P/L)
FY21 FullYear Result

1 Net sales(100 million JPY)
Year-on-Year

FY23 FullYear Result (1) Year Result (2)(2)-(1)

1,384

1,627

1,670

43

830

900

957

57

60.0 (%)

55.3 (%)

57.3 (%)

2.0(%)

4 Gross profit

554

727

713

△14

5

SGA

327

382

394

6

R&D costs

85

104

7

SGA total

412

8 Operating profit

2

Sales cost

3

（Cost rate）

12(B) Negative factor

△46

109

5

1. Exchange margin (yenappreciation)

△23

485

503

17

141

242

210

△31

3. Cost deterioration, etc.

4. R&D cost increase

24

8

5

△4

10

Non-operating expenses

3

15

0

△15

163

235

215

△20

12

Extraordinary income

4

10

0

△10

13

Extraordinary losses

1

8

1

△7

14 Net profit before taxes

167

237

214

△23

Corporate taxes

44

59

59

0

123

178

155

△23

Exchange rate(1$=)

¥113

¥135

¥130

Exchange rate(1€=)

¥131

¥141

¥140

16 Net profit(100 million JPY)

15
15

Non-operating income

15

Factors for fluctuating ordinary profit(year-on-year)(A) Positive factor
1. Sales volume increase

9

11 Ordinary profit

10

FY22 Full

2. SGA increase(A)+(B)

△12
△5
△5

△31

Ordinary profit analysis(100 million JPY)
Sales
volumeincrease+35
Improved
cost, etc.
Exchange
margin(weak yen)

+102

Sales
volumeincrease

+36

+15
△55
Increased △19
SGA

△23

Increased
R&D cost

Exchange △12△5 △5margin Increased
Cost(strong
Increased
SGA
deterioyen)
R&D cost
ration,etc.
FY22Result242
FY21
Result

141

11

FY23
Forecast210

(100 million JPY)

FY2022

FY2023Full-year result

Full-year result

Full-year forecast

1,384
141

1,627
242

1,670
210

Net profit

163
123

235
178

215
155

Net sales

851

948

1,048

Operating profit

48

58

68

Industrial
Equipment

Net sales

340

495

455

Operating profit

131

233

200

MedicalEquipment

Net sales

193
11

184
5

167
2

Company Total

Expense

49

54

60

¥113

¥135

¥130

¥131

¥141

¥140

Net sales
Operating profit

Company Total

Scientific/Metrology
Instruments

Exchange rate(1$=)
Exchange rate(1€=)

12

FY2021

Ordinary profit

Operating profit

(100 million JPY)

(Consolidated)

FY21

FY22

FY23

Full-year result

Full-year result

Full-year forecast
Transition of Consolidated Orders, Sales and Backlog

678

591

Interest-bearing debt

166

115

65

Total assets

1,896

1,993

2,050

Net assets

859(45.3%)

1,019(51.1%)

1,140(55.6%)

Dividend(JPY)

50

66

66

Capital investment

69

36

50

Depreciation cost

41

47

48

Consolidated
Orders received

1,712

1,647

1,700

Consolidated
Order backlog

936

956

986

(capital-to-asset)

13

688

Inventory(100 million JPY)

Overseas sales ratio

63.4%

70.7%

67.0%

ROE

17.9%

19.0%

14.4%

FY17

FY18

FY19
Order
Received

FY20

Sales

FY21
Order
backlog

FY22

Orders of scientific/metrology instruments continue to be strong. Semiconductor market is in an adjustment phase.

Overview

ScientificandMetrology
Instruments

University andGovernmental
Demand(Favorable)

Private Demand(Semiconductor)(Good)

Private Demand(other industries)(Good)

Industrial
Equipment

Lithography
System Market
EB Source
Market(Mixed)(Slow)

Japan

MedicalEquipment

14

Governments continue to invest in science and technology
Chinese market is active due to special demand from Chinese low-interest
financing policy
Steady inquiries in Europe and USA
Steady inquiries of TEM, especially in Taiwan, Korea and China
Increasing need for electron microscopes (TEM, SEM, EPMA) due tominiaturization and complexity
Overall, capital investment is active.
R&D investment for next-generation batteries continue to be strong
Multi-beam mask writer is weak because of semiconductor market being inadjustment phase
Single beam mask writer for legacy node is active, due to demand for power
semiconductor devices
Weak inquiries for deflector e-beam source due to weakened demand ofsmartphones

Demand of biochemistry analyzer is increasing, mainly for test centers.
(Good)

Overseas
MarketInquires/orders decreased due to lockdown in China, and others.
(Slow)

2. Performance of each business
2-1.Scientific/metrology instruments

Consolidated Net Sales/Operating Profit Transition(Billion JPY)

Consolidated
net sales

OperatingprofitOperating profit
margin(Operating profit margin)

Triangle Plan

Triangle Plan 2022

Evolving Growth Plan

104.8
94.8
85.1

77.6

76.6

5.0%
1.9%

1.6%

1.3

1.1

FY16
Result

FY17
ResultExchange rate(1$= Yen)

16

70.6

68.5

66.5

6.1%

6.5%

4.8

5.8

6.8

FY21
ResultFY22
Result

FY23
Forecast

5.7%
3.5%

1.7%

3.9

2.7

1.2

FY18
ResultFY19
Result

FY20
ResultContinue efforts for profit enhancement through further development of Scientific and Metrology Instruments, suchas electron microscopes

Expansion in overseas markets

Development of differentiated products
World-leading technology
proven by track record inacademia research of
cutting edge technologies
Development of innovative
products

Growth in electron
microscopes market driven
by overseas markets, such
as Asia countries including
China
ProfitEnhancement

Subscription/
SharingService

Further penetration incommercial use, including
Applied R&D and QA / QC
purposeExpansion in the private sectors

17

Increasing acquisition-rateof service business fromoverseas customers
Providing innovative
service businesses

Equipment Sales(Re-use)Contracted Analysis

Improvement of service business acquisition rate

FIB (Focused Ion Beam) is an instrument that irradiates a focused ion beam onto a sample for milling and observationand can cut out structures at desired locations inside the sample. It is a necessary instrument for R&D and quality control
of semiconductors and advanced materials, which have been actively developed in recent years.

JIB-PS500i provides solutions to assist TEM specimen preparation with high throughput workflow from specimen
preparation to TEM observation.
TEM

TEM specimen holder

Sample : FinFET (5nm process)

JIB-PS500i
FIB-SEM system
18

Strong inquiries and orders for R&D of next generation batteries.
Increasing inquiries for particle analysis systems combining scanning electron microscopes (SEM) and energy
dispersive X-ray spectrometers (EDS) for the manufacturing process control and inspection applications.
Next Generation Battery

Analytical Solutions

Battery materials requires handling without air exposure to
avoid alteration. Our sample preparation equipment andobservation/analysis instruments provide Air-isolated transfer
solutions.

Environment Inspection System for Automotive Battery Production Line

LIBs for EV requires control of contaminants originating from theproduction environment, increasing the need for particle analysis
systems combining scanning electron microscopes (SEM) .
Acquired image

Air-isolation transferring

SEM

Extracted particles

Elemental analysis resultof extracted particles

Observation& Analysis

EPMA※
Observation& Analysis

Measurement area

AES
Observation& Analysis

Air-isolatedcooling CP
FIB

Cross Section
Ion Milling

Thinning※EPMA: Electron Probe Micro Analyzer

19

XPS
Observation& Analysis

TEM
Observation

Example of calendar reflection▪ The National Crystallography Service (NCS) is a world leading, uniquefacility in UK providing a service and researching in chemical
crystallography.
▪ To provide more advanced solutions, the NCS newly established
National Electron Diffraction Facility and ‘XtaLAB Synergy-ED,’Electron Diffractometers were supplied to University of Southamptonand University of Warwick.
Our analysis result using “XtaLAB Synergy-ED”

3D structure of telmisartan, a drug for hypertension (antihypertensivedrug), was obtained. (The structure could be analyzed with crystals
smaller than 1 µm, which is impossible with X-ray crystallography.)

Structural formula oftelmisartan

3D structure oftelmisartan obtained by
XtaLaAB Synergy-ED

Professor Simon Coles from University of Southampton (left) andProfessor Richard Beanland from University of Warwick with a
Rigaku XtaLAB Synergy-ED.
Photo fromhttps://www.southampton.ac.uk/news/2023/01/crystal-electron.page

20

JEOL congratulates Professor Yuichi Ikuhara (Institute of Engineering Innovation, School of Engineering, the University of Tokyo) andProfessor Naoya Shibata (Director, Institute of Engineering Innovation, School of Engineering, the University of Tokyo), recently awarded
the Japan Academy Prize for development of State-of-the-Art Electron Microscopy and their contribution to Nano Interface Technology(Joint Research). As corroborators with JEOL, their work in developing the Magnetic-field-free Atomic-Resolution STEM (MARS), Annular
Bright Field (ABF), and Optimum Bright Field STEM detector (OBF) is invaluable.
(March 14, 2023)

In 2019, University of Tokyo and JEOL successfully
developed atomic-resolution magnetic-field free scanningtransmission electron microscope (MARS)We developed the world's first, new electron microscope enabling atomic
resolution observation in a magnetic-free environment to apply to local
electromagnetic field analysis of quantum materials, quantum devices, etc.

Atomic resolution image of Fe-Si steel and DPC image of magnetic
skyrmion(Courtesy of Professor N. Shibata, the University of Tokyo)

21

Substantially reduces the evaporation of liquid helium used in the superconducting
magnet for NMR !
Cryogen Reclamation System product was jointly developed by JEOL Ltd. ,a manufacturer of NMR instruments, Japan Superconductor Technology, Inc.
(JASTEC) , a manufacturer of superconducting magnets, and Ulvac
Cryogenics Inc. which has strengths in cryogenic technologies, by combining
the cutting-edge technologies of each company.
It can substantially reduce evaporation of both liquid helium and liquid
nitrogen that are inevitable as cryogen for the NMR instrument’s
superconducting magnet.

Comparison of the remaining liquid helium transitions(An example when a JEOL magnet is used)22

Increasing inquiries for mass spectrometers (MS), due to "msFineAnalysis AI" that realizes qualitative analysis of
unknown compounds

msFineAnalysis AI Solution
GC-TOFMS
Technology(JMS-T2000GC)

Accurate mass analysis using GC-TOFMS= Composition
prediction of observed ion
Acquisition of molecular formula using soft ionization method
Database of 100 million compounds using AI technology createdSoft Ionization
Technology(EI/FI, EI/PI, CI)

AI Structure
Analysis
Technology(msFineAnalysis AI)

msFineAnalysis AI uses a complementary combination of deep learning andmachine learning with different characteristics
Main AI (Structure Analysis)

Support AI (Partial Structure Prediction)
Predicated mass
spectraMeasured mass
spectraPresence
Absence

100 million compounds
structural formula

23

Neural Network

100 million predictedmass spectra

Regression

Contains a predictive mass spectral database of
approximately 100 million compounds

Predicts partial structure from measured mass spectrum

Provides structural formula even for unknown compound

Predicts presence or absence of 48 partial structures2. Performance of each business
2-2. Industrial equipment

Consolidated Net Sales/Operating Profit Transition(Billion JPY)

Consolidated
net sales

OperatingprofitOperating profit
margin(Operating profit margin)

Triangle Plan

Evolving Growth Plan

Triangle Plan 2022

49.5

47.0%

44.0%

38.5%

28.4%

30.0%

23.3%

30.9%
23.8

45.5

34.0

30.3%
24.0

23.3
20.0

16.7

16.6

13.1

11.6
4.8

5.0

FY17
Result

FY18
Result

7.4

7.3

FY19
Result

FY20
Result2.7

FY16
ResultExchange rate(1$=Yen)

25

FY21
ResultFY22
Result

FY23
Forecast◼

◼

◼

Demand of single beam mask lithography system for legacy node are strong, especially in China, due to power semiconductor devices
demand.
Spot beam lithography system remains strong with increase of semiconductor R&D budget, in addition to brisk markets of semiconductor
lasers and optical communication
Enhancing overseas service structure (installation of clean rooms/training back-up equipment, etc.)

Single Beam Mask
Lithography System

JBX-3050MV Electron Beam Lithography System
for 45nm to 32nm note mask/reticle production

JBX-3200MV Electron Beam Lithography Systemfor 28nm to 22/20nm note mask/reticle production

Spot Beam(Direct lithographysystem)JBX-8100FS Series Electron Beam Lithography System

26

JBX-9500FS Electron Beam Lithography System◼

◼

Orders received for "JAM-5200EBM Electron Beam Metal AM Machine” in JapanJEOL to install JAM-5200EBM at Cumberland Additive’s Neighborhood 91 facility in Pittsburgh, USA. This collaboration
brings JEOL new opportunities to demonstrate the unique abilities of the new EBM system in USA.

◼

A demo machine to be placed in Europe this FY◼

Accelerating sales promotion in USA and Europe
Modeling Examples

27

Material：Ti64

Material：Nickel-based superalloy

Gear box

Impeller with shroud

Material : Pure copper

Material : Ti64

Heat sinkAcetabular cup

2-3. Medical equipment

Consolidated Net Sales/Operating Profit Transition(100 million JPY)

Consolidated
net sales

OperatingprofitOperating profit
margin(Operating profit margin)

Triangle Plan
11.7%

Triangle Plan 2022

Evolving Growth Plan

11.5%

21.6
19.4

19.3

10.0%

16.8

17.1

8.4%

18.4
16.7

15.9
6.0%

5.7%

2.9%
2.2

FY16
ResultExchange rate(1$=Yen)

29

2.3

FY17
Result2.0

FY18
Result

1.2%

1.4

0.9

1.1

FY19
Result

FY20
ResultFY21
Result

0.5

0.2

FY22
Result

FY23
Forecast

Continue promoting to overseas markets, especially emerging countries
Increasing inquiries especially from test centers in Japan

JCA-BM6010 G

JCA-ZS050

Clinical Chemistry Analyzer

Clinical Chemistry Analyzer

JCA-BM8000 series(BioMajesty 8000 GX)
Clinical Chemistry Analyzer

Features of JEOL Equipment

Micro volume sample & reagent / High-throughput30

3. Our initiatives to SDGs

Our business growth is directly linked to SDG goals
In our management philosophy, there is an expression of “contributing to the progressin both science and human society”.
Even before the term SDGs was coined, we have been working on projects that lead tothe sustainable development of society. For many years, we have been involved inuniversity-industry collaborations and joint development around the world, contributing
to the resolution of social issues and development. Through our "Evolving in the 70thyear", we believe that the growth of our business will lead to the development of asustainable society. We will also contribute to the long-term existence anddevelopment of our company and high evaluation as an investment target.

32

GlobalSingle Cell
Environmental
Analysis
Infection
Analysis
Nano
Quantum
Control
Material
Technology
5G/6G
Measures
Element
Food
Structural
Infrastructure
Strategy
AnalysisLife Science
Drug
Sustainable
NEXT Generation
Semiconductor
Development
Next
HydrogenMaterial
Forensic
Generation
Metabolome
basedLight-Emitting
Science
Society
Element
Innovative
Battery

Green
Technology

JEOL co-sponsored the “Marie Skłodowska Curie Award” for young female researchers, who aspire to be active on
the global stage, was established in 2021 by the Japan Science and Technology Agency (JST) and the Embassy of
the Republic of Poland in Japan.

Award ceremony
May 16, 2023
Sponsored by

Japan Science and Technology Agency (JST)Embassy of the Republic of Poland in Japan
Co-sponsored by
JEOL Ltd. (JEOL)

Polish Academy of Sciences
Supported by
Ministry of Education, Culture, Sports, Science and Technology
Polish Ministry of Education and Science33

4. Summary

Becoming a top niche company supporting
science and technology around the world
Company Philosophy
On the basis of "Creativity" and "Research andDevelopment", JEOL positively challenges the world's
highest technology, thus forever contributing to theprogress in both Science and Human Society through its
products.

Vision“Evolving in the 70th Year”
Accelerate business expansion and achieve even higher
profitability based on our unique technologies and human networks
which have been developed since the company's founding.

Mid-Term Management Plan

“Evolving Growth Plan”
We aim to improve customer satisfaction by enhancing
our R&D, manufacturing, and service capabilities.

Promote Innovation by co-creation

35

Note on document handling
Information provided by this document and presented orally by our representative contains assumptions and beliefs basedon data currently available.
Readers should be aware that actual results could differ materially from this outlook due to various known and unknown
factors that impact our performance such as economic trends, upturn or downturn in the semiconductor industry, andchanges in R&D spending.
2023 JEOL Ltd.